AP: Pace Digital Bags SECI’s 600 MW/1,200 MWh BESS Project

Bengaluru-based Pace Digital has bagged a major order from the Solar Energy Corporation of India (SECI) for a 600 MW/1,200 MWh Battery Energy Storage System (BESS) worth ₹1,159.31 crore (including GST). The contract also includes 10 years of service and maintenance for the DC package. The tender for this project was floated in August, with winners announced two months later.

In a regulatory filing, Pace Digital said that under the scope of work for this BESS project, it will undertake design and engineering of the complete system and associated components. The company will also supply BESS DC Blocks equipped with HVAC and fire protection systems, Power Conversion Systems (PCS), Battery Management Systems (BMS), and Energy Management Systems (EMS).

Pace Digital will be responsible for integrating the BMS and EMS with PCS, carrying out cabling from the BESS DC Block to PCS, and overseeing the testing and commissioning of the BESS—including batteries, PCS, and EMS. The company will also handle plant performance demonstration, trial operation, and comprehensive maintenance of the entire system for 10 years from commissioning.

According to the contract, Pace Digital is required to complete the supply of 50% of the awarded BESS capacity within 11 months and the full 100% capacity within 13 months from the effective date of the contract agreement.

Following the supply, the testing and commissioning of the DC package will be conducted. In collaboration with SECI or its authorised AC package contractor, 50% of the capacity is expected to be commissioned within 14 months, while the entire 100% capacity is scheduled for completion within 16 months from the contract start date.

These timelines mark a structured approach for the rollout of one of India’s largest BESS projects, aimed at enhancing grid stability and supporting renewable energy integration in Andhra Pradesh.

Scope Of Work

Under the tender, SECI will supply energy to Andhra Pradesh, with the project to be implemented under a market-based operation model at Kolimigundla in Nandyal district. The system will connect to the Kurnool-3 substation of the Inter-State Transmission System (ISTS) network and will include a 15-year maintenance contract from the date of commissioning.

The tender falls under the “Operational Guidelines for Tranche-2 of the Market Component of the Scheme for Viability Gap Funding for the Development of Battery Energy Storage Systems” issued by the Ministry of New and Renewable Energy (MNRE), along with its subsequent amendments and clarifications. As per the terms, Pace Digital must submit a Contract Performance Guarantee (CPG) equal to 10% of the contract value within 20 days of receiving the Notice of Award (NoA).

Following the supply, the contractor is expected to complete the building, testing, and commissioning of the DC package, while the employer or its authorised AC package contractor must commission the entire project within 14 months from the effective date of the contract. The supply of the full 600 MW/1,200 MWh BESS capacity must be completed within 11 months.

The latest tender aligns with  Andhra Pradesh's Integrated Clean Energy Policy 2024, which aims to add over 160 GW of renewable energy capacity and approximately 25 GWh of BESS under various deployment modes, which envisions the state becoming a national “storage capital”.